July 2022

marketing
Report
Oc3an Group

2
01
Oc3n Group

Content index

01. Executive summary 05. STDP Analysis

02. Introduction 06. Marketing Mix 4P
03. Product Description 07. Conclusion
04. SWOT Analysis 08. Appendix

02
Executive Summary
Baedal Minjok, more commonly known
as Baemin in Vietnam, is a
powerhouse in the delivery industry
from South Korea and a newcomer in
Vietnam. Despite having a heart-
touched marketing strategy, Baemin
still struggles to compete with the
existing applications. This report aims
to analyse the strengths and
weaknesses of Baemin as a delivery
application and offers a way for
Baemin to improve its market
presence and growth through product
innovation after scrupulously creating
and examining scrupulously creating
and examining its
microenvironment and
SWOT. It also includes
an STDP analysis and
applies the marketing
mix strategy (4P) for
the new product aiming
to tackle a common
psychology among
users. 03
Introduction

Baemin is a Korean online food

delivery company founded by Woowa
Brothers Corp in 2010. After nearly 10
years of development, Baemin soon
became the nation's best and most
successful delivery application, aiding
Woowa Brothers to be named "South
Korea's unicorn startup". Although on
the threshold of achieving success in
Korea, Baemin continued to expand to
Vietnam's market in 2019, starting from
Ho Chi Minh city, then became one of
the biggest competitors in the
domestic market within just months of
operation.

04
Vũ trụ gọi,
Baemin trả lời !!

As the top food tech firm in Vietnam,

Vision Baemin is assembling and growing the
culinary ecosystem in collaboration
with outstanding, confident, engaged
coworkers.

They turn the mission "Enjoy good

food, wherever you want it" and "help
people eat wherever they are" into

Mission reality with only a few simple activities

required on the app: find the nearest
store, choose food, and place an
order. Baemin delivers food at a
reasonable price with satisfaction
because of the speed of delivery.

This article aims to analyze Baemin's

Purpose current marketing issues and then

recommend a new function for the
app to increase its core value.

05

 Product
description
1. BAEMIN application
With its signature blue mint
colour scheme, unique font
and fat cat mascot, Baemin’s
application is easily
recognizable. The application
acts as a connection between
three parties: customers,
merchants, and riders. Users
order food, the rider comes
to the store to pick up the
food and deliver it to users.

2. BAEMIN delivery team

Baemin’s color choice

attracts fun and
energetic youngsters
into its delivery team,
most of whom belong
to the male gender and
live in metropolitan
areas.

06
 Micro
environment
Customers
The targeted customers range from 16 to 23 with high demand for
food. According to Deloitee (2021), food expenditure has
increased from 34% to 42%, which motivates the industry's
growth. After the impact of the lockdown of Covid 19, most are
now exposed to online shopping and delivery, so online food
ordering has become a norm in society, even among the elderly.

Partners
Due to the fierce competition and diversity in the food and
beverages (F&B) industry, many restaurants and cafes now opt
for online sales. To illustrate, GrabFood, a competitor in the
food delivery market, had over 100,000 partnered restaurants
and over 800,000 food options in mid-2020.

Competitors
As a new startup, arriving in this lucrative market with two big
dominant apps (Grab and Gojek) was challenging for Baemin in
2019. As more competitors were introduced to this industry, the
promotions war persisted. Out of all the delivery companies, Grab
was the first to report a net income in 2020 after 6 years of
operation, while Baemin and others were still in the negative.
(Appendix 1)

07
 Strength Weakness Opportunity Threat

Food delivery
High brand services have
recognition owing Low diversity of gained substantial Low market
to unique color restaurants and demand after share in other
scheme and food social behavior cities.
mascot usage. changes after
lockdown.

An abundance of
resources
External factors
(financial,
Young such as traffic and
technological, and Lack of
Vietnamese are weather can
human capital). competitive
always willing to cause inevitable
Possesses prior discount for
change and adapt late delivery ->
experience as the customers
to new things. low customer
#1 food-delivery
satisfaction
service app in
Korea.

Strategy: Focus
on a specific area Majority of the
Perception: many
to increase Vietnamese
people are biased
market growth population are
Not available 24/7 and not willing to
and maintain used to the
try other
market share then concept of food
applications.
slowly spread to delivery apps.
other areas.

Trend-catching
and modern
content creations,

relatable to Gen
08
Zs.
SWOT
Analysis Table
Baemin introduces food with
fun through its trend-catching
marketing campaigns. Their
S contents incorporated hot
topics like Horoscopes, April
Fools, and Halloween, which
attracted immense media
exposure. Baemin, as a late-

W
comer, focuses more on
being the best in one location
to gain popularity, then later
spreads its influence to other
cities. In order to replace
existing applications, Baemin

O needs to be innovative. Pricing

is not a reliable strength, and
Baemin has no unique function
to account for its lack of
diversity. To resolve this,
Baemin could add a unique

T function to create an
exceptional user experience
by capturing customers'
insight.
09

STDP

10
 Fresh
High school
graduate/
Segmentation student/University
Millenials
student Office clerk  

Living in urban
Living in urban areas, key
areas, key
Geographic Region cities such as HCM & Ha
cities such as
Noi
HCM & Ha Noi

Age 17-22 23-30

Average
income to high
Low allowance/income 2
Income income 7
Demograph million - 4 million
million -> 10
ic million

Student Full-time office

Occupation
Part-time job clerk 

Spend time at
home 
Spend time outside
Go home after
Friend-gathering at the
Lifestyle  work
coffee shop 
Fast paced
Trend-catching
lifestyle with
deadline 
Psychograp
hic
Easily adapt to new Easily adapt to
things new
Prefer entertaining and things Careful
Personality 
comfortable things consideration
Health and environment of what to
conscious  choose 
11
 Time
constraints Expe
Time
nsive if cook for
constraints Do
one
Reason to use not cook Order
person Discount
Baemin  with friends for
Work night shifts
promotions
and need a
Discount
place to find
mid-night food.

Scrolling on the
Scrolling on the app to see what
app to see what interested them
interested Choose the
Action and
themTime familiar
time spent on
spending: 5-10 restaurant Time
the app 
Behavioral minutes (the spending: 5-10
number can vary minutes (the
for group orders)  number can vary
for group 

Promotion Qualif
Promotion ied food with
Spending on food fast delivery
Benefits and service for Convenient Hotli
sought  satisfaction nes to resolve
Convenient New order and
experiences delivery issues
(24/7) 

Loyalty  Medium High

Occasion All day All day 

12
 Targeting
When ordering food, the most difficult obstacle users face is
how to decide on what to eat among all the choices. This
problem is so prevalent that Facebook groups with food reviews
and sharing posts always receive significant attention from
young people. It is clear that when there are too many choices,
psychologically, people struggle to make a decision. This
symptom is known as "a paradox of choice". This phenomenon is
irritatingly time-consuming, and many end up losing interest and
not ordering.

Baemin should recognize this customer's insight and

implement a new function to help users resolve this problem to
stand out among others. With how fast Gen Z and late
millennials catch trends and adapt to new technology, a new
function that aims to solve the most fundamental psychological
problem when ordering food will have a high possibility of going
viral. Product innovation also stimulates Gen Z's characteristic of
novelty-seeking and helps them find fun factors in ordering food.
The new function should prioritise food quality to satisfy
millennials' scrupulousness. 13
 DIFFERENTIATION
Message

If users cannot choose, Baemin can save their time and

choose for them.

This new function will be called “Multiverse'', - a curiosity-

piquing term. The vision of this function is to incorporate
modern trends with horoscopes, tarot reading themes and
Baemin will be the medium in this theme, receiving
messages from the universe and then translating and
converting them into food recommendations for users.

The message of “food recommendation” will appear on

tarot cards to add immersive factors to this function -
creating a similar experience to that of Tarot readings.

Image

Baemin’s mascot, Fat Cat, will be the tarot teller. This

reinforces the brand recognition factor (mascot) and
makes the experience familiar and engaging. The usual
colour choice of blue mint will now be used
simultaneously and harmoniously with the colour of
mythically - purple. 14
14
 Positioning
Despite its late arrival, Baemin continuously delights its users with incentives
(promotions) and great delivery service. To put things into perspective, GrabFood
offers a lot of promotions but with imposed limitations while Baemin has little to no
limitations. GrabFood and Baemin with its "Multi-layered promotion" from their
merchant partner both provide more promotions to consumers than GoFood and
LoShip (appendix 2.2). Baemin continues to dominate on the satisfaction service
quality rank that customers are not only into the shippers but also support so many
campaigns of Baemin. (9mobi.vn.. n.d.)

One of the unique functions of Baemin is its recommendation and attraction

abilities which helps users have a fabulous ordering experience with high
accuracy of user demand. It will offer many nearby restaurants for customers with
their relevant favourite habits and tastes. Grab's "restaurant recommendation"
provides high-rated restaurants, but the location is not nearby. On gofood, the
function is more accurate with location, but the design is not attractive; the food
was ordered randomly

15


The positioning statement could be: For indecisive

customers who take a long time to order and do not know
what to eat. Baemin recommends random dishes
depending on users' preferences. Unlike traditional food
delivery applications, Baemin enables customers to
consume good cuisines. At the same time, engage in
intriguing experiences like online tarot reading, which
appeals to the experience of young people - Baemin's
significant consumers.

Positioning
statement
16
Marketing Mix: 4P
PRODUCT
How does it work:
“Multiverse '' will be a built-in function in Baemin’s main
application. It will use existing data of restaurants of Baemin Pick
and combine it to the algorithm to recommend the most suitable
food for users. These will ensure food’s taste, quality, delivery
time and satisfy the customer preference.

For users who have used Baemin before, it will use users’ review
and purchase history to recommend similar food and continuously
use GPS service to recommend nearby dishes and restaurants. As
for newly registered accounts, Baemin will ask for general
information and segment this user into a group with similar
characteristics and recommend this group’s most ordered dishes.

17
 Step by step
1. Upon opening the
app, Baemin users will
find the “multiverse”
function in the main
page.

2. Users will choose what they need. The

application will help users choose between
dishes, or if the user wishes, Baemin can
recommend food for them.

18
2.1: Have options and confused
about what dish should be
chosen (between 2 to 3 dishes)

User types in the boxes the dish 2.2: If users do not have
they are choosing between any options.

User choose one tarot card

Baemin will choose and give the reasons why.

19
 3. User confirms the message
If they are not interested in the food, they can
choose to shuffle the card again.

4. Users wait for delivery

Order is coming !

20
Marketing Mix: 4P
PRICE
Competition-based pricing strategy
Because the main customers of Baemin are the young generation,
who usually care about the cost of delivery and promotion of one
product, Baemin offers a competition-based pricing strategy to
attract more customers.

BAEMIN charges the following shipping costs to customers:

- Travel distance < 3km: same price 15,000 VND per order
- For distances more than 3 km, add 15,000 VND plus 5,000 VND
per kilometre.

Based on the comparison of shipping fees with competitors (see

Appendix 2), Baemin is more competitive and does not include
service fees.

PLACE
The application is available on both CH play and
Appstore, the ordering service can be only in 21 major
cities in the country, in which 5 cities are under the
jurisdiction of the central government.

21
 PROMOTION
Realising that most users are often indecisive in
their food choices, BAEMIN made the "Multiverse"
campaign to reach young people and meet their
dietary needs. The message of this campaign
involves "spiritual advice" or "cosmic signal," which
is a trend that young people, a vital customer
target for BAEMIN, are highly interested in.
First, the campaign will be advertised within the
BAEMIN app. When users open the app, the
campaign banner "The universe calls, BAEMIN
answers" will be the first thing they see.

Also, previous OOH advertising campaigns were very successful.

They made the brand more well-known, so BAEMIN continues to
use OOH advertising with the campaign "The universe calls,
BAEMIN answers" in regions and provinces where BAEMIN is
prevalent. Also, BAEMIN wants to expand its out-of-home
advertising to include bus stations in target areas, such as District
3, Binh Thanh, Go Vap,.

22
In addition, Baemin
will run
advertisements on
Facebook and post
about the
campaign on its
social media

23
Conclusion
To conclude, Baemin positions itself as the leading food delivery
provider for the younger generation, especially those who are
indecisive in choosing food. As a new participant in the food
delivery industry, Baemin has developed new tactics that made
opponents wary. Although Baemin is struggling with abundant
resources from the parent company, it is still making great efforts
to gain market share in the Vietnamese market. In order to
continue to develop in many provinces and cities and attract even
more people from different generations, Baemin needs to improve
product quality to gain popularity instead of constant promotions.
Product innovation is one of the solutions that Baemin can
consider, which the report has gone through thoroughly.

24
APPENDIX
Appendix 1

25
Appendix 2

Appendix 2.2

26
 2022 Oc3an Group

Baemin's
Report

Thank
You
References
Deloitte.com. (2021).
https://www2.deloitte.com/content/dam/Deloitte/vn/Documents/consumer-business/vn-cb-
consumer-survey-2021-vn-version.pdf

9mobi.vn. Top dịch vụ giao đồ ăn, ship, đặt đồ ăn online tố t nhất. (n.d.). https://9mobi.vn/top-
dich-vu-giao-do-an-ship-dat-do-an-online-26682n.aspx

VnExpress. (2022, May 25). Những thay đổi trong thói quen ăn uố ng sau đại dịch. Vnexpress.net.
https://vnexpress.net/nhung-thay-doi-trong-thoi-quen-an-uong-sau-dai-dich-4465845.htm
27